Vietnam Today

Energy efficiency needed to meet future demand

Enhancing efficient energy use, expanding renewable energy resources, and strengthening power exchange in Asia would help Vietnam meet the growing demand for electricity, put at 7 per cent to 10 per cent annually to 2030, and reduce carbon emissions to promote long-term economic growth.

The comments were among the expert opinions presented at the “Shaping Vietnam’s Sustainable Power Sector Development” conference held on November 4 in central Da Nang city, attended by Deputy Prime Minister Hoang Trung Hai, Deputy Minister of Industry and Trade Hoang Quoc Vuong, Mr. Axel van Trotsenburg, Vice President of World Bank in Charge of East Asia and the Pacific, and Ms. Anita Marangoly George, World Bank Senior Director for Energy & Extractives.

Mr. van Trotsenburg said that Vietnam has done well in providing access to electricity, with almost 100 per cent of the population now connected. Access to power has also been accompanied by improvements in operational efficiency and service quality.

“The key question today is how to meet future demand, while also complying with the government’s commitments to reducing greenhouse gas emissions in the context of climate change,” he said.

Vietnam has a high share of renewable energy in its total generation mix, with hydropower accounting for 42 per cent of power generation; much higher than in many other countries. The conference highlighted that Vietnam can further develop its solar and wind potential but this will require improvements in the regulatory framework.

However, even if Vietnam fully taps into its potential in renewable energy it may still not be able to fully meet future energy demand. Greater efficiency in the generation, transmission, and distribution of energy will be critical. Regional power trade also offers potential benefits.

The conference was also told a low-carbon development scenario should not adversely affect economic growth in Vietnam and may instead boost growth in the long run.

Vietnam continues to be committed to supporting competition in the power sector and the government has set out a clear roadmap for developing a wholesale electricity market, which is to be fully operational by 2021.